Accountants only need to understand this set of rules of accounting standards for business enterprises, which is not so profound, just like the rules of the game.
Tax law and accounting are the closest, business activities are the foundation, and business activities generate tax obligations; Accounting records business activities, how to confirm income, how much money is earned, etc. Only in the whole society can this set of rules be used to record, and taxation also uses this set of rules to measure the tax burden of each company, which is fair to all companies.
The tax law is a set of rules of the tax bureau, and it is a set of rules on how to levy taxes on companies and how to calculate the tax payable.
In fact, how to learn these rules, just understand and remember them.
If all companies abide by accounting standards and tax laws, there will be no audit.
Auditing can be seen as using these two sets of rules again to measure whether the company acts according to these rules. If it is wrong, you should rush back first, and then do it correctly.
Therefore, the audit needs to be familiar with these two sets of rules, know what the company did wrong, and know how to correct these mistakes.
In addition, auditing has its own theory. It does not directly audit all the business operations of the company, but first identifies where there are problems through probability, industry situation and company situation. , and then grasp the big and put the small. Learning auditing means learning this set of theories, but in practice, the theory is a framework. To apply it, you must have knowledge of accounting and tax law as a ruler.
First of all, there must be two rulers. What can we measure without a ruler? So certified public accountants should be very familiar with these two sets of rules.
With a ruler, how to measure it? The usage of ruler can be said to be audit theory.